Revitalizing China's gloomy exports (3)

08:15, September 26, 2012

Although China's trade volume was rated the world's highest in 2011, China's foreign trade development remains unbalanced, according to Shi. Since 60 percent of Chinese exports are from the processing trade and lack independent brands and distribution networks, foreign companies and retailers are earning large profits. "Under this blanket of low profits, heavy losses will be inflicted upon Chinese enterprises when market demands decrease," said Shi.

The goal of export growth in 2012 set by the Chinese Government is 10 percent, which is hardly ambitious but still difficult to achieve.

Li Jian, a research fellow at the Chinese Academy of International Trade and Economic Cooperation (CAITEC) affiliated with the Ministry of Commerce (MOFCOM), said that at present trade-related policies, including those on tax rebates, credit and renminbi exchange rate, are all stable. The CPI growth has remained low, and so the cost pressure of China's export-oriented enterprises is somewhat alleviated.

"The biggest variable factor affecting China's exports is still external demand, and the external environment is still not optimistic," Li said.